KUALA LUMPUR (Oct 17):  The government is ready to take over the function of Padiberas Nasional Bhd (Bernas) after the termination of the concession in 2021, the agriculture and agro-based industries ministry said, adding that this to ensure any impact on the country's rice industry can be addressed accordingly.

“Forming an agency or a board with a new, more effective management model and strong financial capabilities to control the development of the industry, will definitely be considered,” its Minister Salahuddin Ayub said today. 

He was replying to a parliamentary question by Member of Parliament for Tangga Batu Rusnah Aluai, who asked whether the government intends to reestablish the National Paddy and Rice Board (LPN) to take over the function of Bernas.

“This matter will be studied in detail by taking into account all aspects and stakeholders in the industry, including in terms of food security and the welfare of industry players such as farmers, producers and the general public,” he added. 

In June, the government announced that Bernas’ monopoly to import rice has been terminated. A working paper on the breakup will be drafted with feedback from the ministry and other stakeholders to be submitted to the government for further action.

Calls for a new framework for the paddy and rice industry has been rife, following the dismantling of Bernas' monopoly within the sector.